Cryptocurrencies drifting near resistance

Cryptocurrencies are backing off from resistance levels, as the selling pressure outweighs the weak buying activity. Bitcoin (-2.33%) leads the drops among the top players, followed by Bitcoin Cash(-1.37%) and Bitcoin SV(-1.7%) and Tezos(-1.26%). The Star of the day is Groestlcoin (GRS), which comes out of virtually no value to $10,99 in minutes, raising its market cap to $821 million. I the Ethereum-based token section, LINK(+3.4%) lead the advances among the top-cap, whereas HEDG(-7.1%) and REP(-5.4%) lead the losses.

The Market capitalization of the crypto sector descends slightly to $177.963 billion (-0.5%), 1,6 billion less than 24 hours ago. The traded volume in the last 24 hours also dropped to $29.5 billion, a 21 percent drop from its previous value. Finally, Bitcoin dominance dropped slightly to 64.71 percent.

Hot News

The White House is projecting between 100,000 and 240,000 SARS-CoV-2 death toll, while Donald Trump warns about a "rough two-week period." Public health officials stressed that the death toll could be much less if people modify their behavior. Trump asked all Americans to join in the efforts to slow the spread of the virus and called it "a matter of life and death," urging the public to follow the administration's guidelines. 

Global payment giants are suffering a massive slump in consumer spending as COVID-19 associated movement restrictions are causing a drop in consumption. Visa, for instance, announced a four percent drop on its figures for the second quarter from the past year. In a recent post, Visa stated

"As countries have imposed social distancing, shelter-in-place or total lock-down orders, domestic spending, most notably in travel, restaurants, entertainment, and fuel, has sharply declined week on week."

Mastercard, Amex, and PayPal have also cut their revenue outlook on the impact of the COVID-19 movement restrictions worldwide.

Technical Analysis: Bitcoin

Bitcoin id dropping to its $6,270 support, as the last move up on low volume hit the $6,550 resistance, where sellers started to exert downward pressure. The price motion seems to be drawing a horizontal wedge. We see also that with the recent action, the price made a lower high. That means BTC is beginning a new leg of weakness that could face a visit of the lowe side of the wedge, at $5850. The MACD is close to a bearish crossover, as the price moves to the lower side of the Bollinger bands. The key level to hold is 6,270. If the price is held above it, it may find new buyers. If it goes below it, it would confirm the new downward leg.

Ethereum

Ethereum's price is holding neat the upper side of the horizontal wedge and moves in a very tight range. Right now, there is no hint about the direction, as the volatility has dried up. Buyers need to see a close above $135 on higher volume, whereas sellers are looking for a large bearish candle with a close below $130.

Ripple

On Monday, Ripple made a good-looking bullish candle with low volume that has been fading after that. The trading activity is still inside a triangular formation that is inside of an ascending wedge. The last movements show that, currently, there is no direction and that traders should patiently wait for the market to show its next move. The key levels to keep an eye on are the same: $0.18 and $0.17.

---

Try Secure Leveraged Trading with EagleFX!